FOX Business’ Jeff Flock reports that auto repair costs have increased 33% over the past four years.
A new report from Edmunds finds that the used car market is revitalized, buoyed by price relief that kept consumers from buying in the past few years.
Auto Shopping Guide released an analysis on Tuesday showing used cars are selling for record prices as a combination of increased supply and cooler prices lure previously hesitant buyers back to dealerships.
Used cars for sale at our dealership in Richmond, CA on February 21, 2023. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
Ivan Drury, director of insights at Edmunds, said the average trade-in age for new and used car purchases is rising. This shows that consumers who left the market while prices were high are coming back, he said.
Drury said more shoppers are buying used cars because the gap between new and used car prices is widening.
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“Consumers returning to the market after years away are likely to have experienced sticker shock when purchasing a new vehicle and are therefore evaluating their purchasing options more thoroughly,” Drury said. writing.
Used cars for sale at our dealership in Colma, CA on February 21, 2023. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
“But the vast majority of new cars are far less likely to be attractive to these buyers, who have waited years to make a purchase and who in their prime were paying above MSRP.” are likely to be slightly more sensitive to price than those in short supply.
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“Until new car incentives return in earnest, used cars will continue to offer something new cars cannot: affordable transportation.”
Edmunds data isn’t the only evidence that used car sales are booming.
May 11, 2022, Carvana Used Car “Vending Machine” in Miami, Florida. (Joe Radle/Getty Images/Getty Images)
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| CVNA | Carvana Co., Ltd. | 120.90 | +3.96 | +3.39% |
Carvana, an online used car dealer, was feared to be on the verge of bankruptcy when its stock hit a low in December 2022, but high interest rates have caused consumers to trade used cars instead of buying them. Since then, the stock price has increased significantly. new vehicle.
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Carvana’s stock price is up more than 147% since the beginning of the year, following an 11x increase last year.
